Fiat Chrysler nears investment grade after Moody's upgrade

"FCA's upgrade reflects the continued improvements in its credit metrics and Moody's expectation that FCA will be able to sustain these credit metrics even in a more challenging environment with softening demand in some of its key markets and additional costs to comply with upcoming emission requirements," Moody's analyst Falk Frey said in a statement Wednesday.

Investment-grade ratings from S&P and Moody's would open the door to further investor confidence in the automaker, which is completing its first 12 months under the leadership of CEO Mike Manley.

Moody's said FCA's reduced debt and improved profitability in North America led to the upgrade. Moody's concluded FCA could be less affected than other companies by possible tariffs between the U.S. and China or Europe because of the automaker's small market share in China and small share of vehicles imported from Europe.